CoGTA must answer for R30m tender fraud
It was revealed yesterday that the Department of Cooperative Governance and Traditional Affairs (CoGTA) has awarded a R30 million tender to a trust that may be fronting for another company (see Daily Maverick report).
These revelations were made in a report compiled by Corruption Watch and the matter is currently the subject of an investigation by the SAPS commercial crime unit.
Given the serious nature of the allegations contained in the report, I will be writing to Minister Richard Baloyi to request that it be tabled for discussion in the COGTA parliamentary portfolio committee. CoGTA needs to be held accountable for its role in green-lighting an irregular tender process that diverted millions of rands' worth of public funds to a private company.
In 2011 COGTA awarded a portion of its Community Work Programme (CWP) to water and sanitation NPO Mvula Trust, whose chairperson is ANC NEC member and deputy minister of Water Affairs, Rejoice Mabudafhasi.
In terms of the tender rules, only non-profit organisations could qualify, yet it appears that Mvula Trust was partnering with Ubuntu Sima, a for-profit company that stands to gain 75% of the income from the tender. This was not mentioned during the bidding process.